Rajasthan Electricity Duty Exemption (Startups)
Department of Industries and Commerce, Government of Rajasthan · Central government
Rajasthan scheme exempts eligible startups from 100% Electricity Duty for 7 years, cutting operational costs.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Electricity Duty Exemption for Startups operates under the Rajasthan Investment Promotion Scheme 2024. It provides a 100% exemption from Electricity Duty for seven years to new businesses. The Government of Rajasthan introduced this measure to lower recurring operational expenses, allowing startups to allocate funds towards product development, market expansion, hiring, and research and development.
This exemption supports early-stage viability and sustained growth. It forms part of the state's effort to build a supportive environment for entrepreneurs and contribute to economic development in Rajasthan.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Rajasthan
- Eligible if recognised as a 'Startup' under the Rajasthan Investment Promotion Scheme 2024.
How to apply
- Confirm that the enterprise qualifies as a startup under the Rajasthan Investment Promotion Scheme 2024. - File the application and supporting documents in the format specified by the Finance Department, Government of Rajasthan, to claim incentives under RIPS 2024. - Wait for the concerned state authority to approve and issue notification on the start date of the Electricity Duty exemption.
Frequently asked questions
What is the Electricity Duty Exemption for Startups?
Under the Rajasthan Investment Promotion Scheme 2024, eligible startups receive a 100% exemption from Electricity Duty for seven years.
Who is eligible for this exemption?
Startups registered in Rajasthan and recognised under the Rajasthan Investment Promotion Scheme 2024 can claim this exemption. The scheme applies to enterprises engaged in innovation, development, or commercialisation of new products or services within the state.
What is the duration of the exemption?
The Electricity Duty exemption applies for a continuous seven-year period starting from the date the incentive is claimed, providing sustained cost relief over that term.
Is there any cap on the exemption amount?
The 100% Electricity Duty exemption applies for 7 years, but it falls under the broader RIPS 2024 policy where all startup incentives are collectively capped at INR 5 crores annually across all applicable benefits.
How does this exemption benefit my startup?
This exemption lowers your electricity-related operational costs, allowing you to redirect funds towards product development, market expansion, or other growth activities, which strengthens your startup’s financial position and growth prospects.
How can I apply for this exemption?
The incentive is claimed under the application process defined by the Rajasthan Investment Promotion Scheme 2024. Application details and required documentation are available through the Finance Department of Rajasthan or the official policy guidelines.
Is DPIIT recognition mandatory for this scheme?
The policy document specifies 'Startups' as eligible, but it does not explicitly require DPIIT recognition as a mandatory condition for claiming the Electricity Duty exemption.
Sectors
- Electricity Duty
- Tax Exemption
- Rajasthan
- Startup Incentive
- Cost Reduction
Details last verified on 9 September 2026. Source: the issuer's published information.